FAQs About Tips and Gratuities

Customer-facing jobs are often partially compensated by tips and gratuities. Waiters, bartenders, gaming dealers, and tattoo artists are common examples of workers who earn part of their pay in tips. Employee rights lawyers near San Jose, CA often counsel clients who are unsure of their legal rights regarding tips and gratuities. If you suspect your employer has been unfairly deducting or withholding your tips, head for a law office right away to get the employment law advice you need. tips - money

Is a service charge considered to be a tip?

Some establishments include a mandatory service charge on the customer’s bill. Since these service charges aren’t voluntarily paid by the customer to the employee, the state of California doesn’t consider them to be tips or gratuities. If the employer decides to distribute a service charge to an employee, it would be considered a bonus.

Is it legal to force me to share my tips with other staff?

It’s customary for waiters to be required to share their tips with busboys and bartenders, but it’s still a common source of controversy. Even if the customer gives you the tip directly, you can be required to add the tip to a group pool, which will then be distributed equally among the employees. California employment law allows this if tip pooling does not benefit the owner, manager, or supervisor.

Will my tips be figured into my regular rate of pay?

Your regular rate of pay plays a role in determining your overtime pay. However, since tips are left voluntarily by your customers, they are not added to your regular rate of pay. The exception is if your employer distributes a mandatory service charge to you. Since this is a bonus and not a tip, it is part of your regular rate of pay for the purpose of calculating overtime wages.

Is my employer allowed to deduct tips from my wages?

No. Your employer is not allowed to confiscate part or all your tips, nor can your employer deduct your tips from the wages you’re owed. Similarly, employers are not allowed to pay you less than the minimum wage because you receive tips.

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